Investors interested in Food - Miscellaneous stocks are likely familiar with Kerry Group PLC (KRYAY) and Mondelez (MDLZ). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Kerry Group PLC and Mondelez have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KRYAY currently has a forward P/E ratio of 20.24, while MDLZ has a forward P/E of 21.85. We also note that KRYAY has a PEG ratio of 1.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MDLZ currently has a PEG ratio of 5.12.
Another notable valuation metric for KRYAY is its P/B ratio of 2.57. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MDLZ has a P/B of 3.30.
These metrics, and several others, help KRYAY earn a Value grade of B, while MDLZ has been given a Value grade of C.
Both KRYAY and MDLZ are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KRYAY is the superior value option right now.
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Kerry Group PLC (KRYAY): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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